Still wondering why Washington DC is Awesome? Can you say Housing?
September 15, 2010 Leave a comment
Our housing market in DC is in recovery mode ahead of the rest of the nation, according to a new from Metropolitan Regional Information Systems and Delta Associates. The second quarter prices in the metro are up from the first quarter and from the same quarter in 2009, with the outer jurisdictions outperforming the core and inner jurisdictions.
The report further indicates that prices will likely gain traction through the remainder of the year, the report said.
The average price of a Washington-area home was $398,445 in the second quarter of 2010, 4.2% higher than in the second quarter of 2009. This marks the third straight quarter that metro-wide prices have risen on a trailing 12-month basis.
Sales volume in the 2Q10 increased 60.6% compared to the first quarter volume, and is up 15.9% since mid-year 2009 despite the expiration in April of the federal homebuyer tax credit program.
Part of the reason for the rosy report is jobs. The Washington region continues to add high-paying jobs, which is fostering housing demand, even as it loses lower-paying jobs, MRIS/Delta said. The region has a 6.3% unemployment rate, according to the Bureau of Labor Statistics, considerably below the national rate of 9.6%. The Bureau will update unemployment data on Sept. 21.
Prices remain highest in the core jurisdictions of the District, Arlington and Alexandria. The average sales price of a core home in the second quarter of 2010 is $509,156, up 2.4% compared to one year ago. In Alexandria, the average sales price in June was up 7.9% compared to June 2009; Arlington posted price increases of 13.5% for the same 12-month period. In the district, the average price in June 2010 was up 1.2% from one year earlier.
The outer suburbs of Loudoun, Prince William and Frederick counties — where foreclosures led to the region’s steepest price declines in 2006 through 2008 — had the strongest yearly price gain of the sub-areas. The average sales price of an outer home in the second quarter is $320,514, up 14.2% from one year ago. In Prince William County, the average sales price in June increased 24.9% from one year earlier. In Loudoun, home prices rose 10.6% from June 2009 to June of this year; Frederick posted declines of 0.3% year- over-year.
Recent market statistics also indicate that buyer and seller pricing expectations are moving toward each other, helping to bring the market into balance, the report said. The average selling price in 2Q10 is 95.2% of list price, the highest ratio since the 2Q07.
The Washington area has an average of 4.5 months of for-sale inventory as of June, down from 5.1 months’ worth one year ago.